Question

Distinguish between Place utility and Time utility

Answer 1

We now extend our analysis of general equilibrium to the sphere of production. Production of goods requires the use of inputs or factors of production. The level of production of goods depends upon the allocation of resources to them

Answer 2

Answer:

The differences between time and place utility have been enlisted below:

1. Place utility is the availability of products at a given place where it is easier for consumers to buy it whereas Time utility refers to the availability of a product at a particularly convenient for the consumers.

2. While making a product available at a variety of locations and stores for the convenience of the customers is place utility, in case of time utility, the hours and days of the week convenient for the customers are considered.

3. Example:

Place utility- Selling products directly to the customers with the help of catalogs.

Time utility- Offering a large supply of raincoats and umbrellas during monsoon.